RENO, Nev.--(BUSINESS WIRE)--EMC Metals Corp. (TSX: EMC) announces that it has agreed to issue convertible loans for total proceeds of USD$650,000. The convertible loans have a maturity date of 12 months from the closing date and bear interest at the rate of 10% per annum. The principal amount of the loan may be converted into up to 13,000,000 common shares at a rate of US$0.05 per share.
The convertible loan will be secured by an interest in the assets of the Company's subsidiary, Wolfram Jack Mining Company (primarily the Carlin Vanadium mineral rights), the Norway exploration rights and a subordinated interest in Springer Mining Company assets. The loan agreements include standard adjustment provisions which in certain circumstances may adjust the conversion price to no less than C$0.039. A total of USD$600,000 of the offering is being subscribed for by insiders of the company. The proceeds of the loan will be used by the Company to fund costs associated with the dispute regarding the Nyngan Scandium project and for general working capital purposes.
Closing of the sale of the convertible loans is subject to the approval of the Toronto Stock Exchange.
About EMC Metals
EMC owns a 100% interest in the Springer tungsten mine in Nevada, USA. The Company recently filed a NI 43-101 PEA on the Springer asset and is following a strategy of seeking a near term restart of the facility. EMC also owns a 100% interest in the Carlin Vanadium property near Carlin, Nevada. Both properties have current NI 43-101 Technical Reports filed on SEDAR, copies of which are also available on the Company website.
In early 2012, EMC’s earn-in on the Nyngan Scandium Project was rejected by our Australian JV partner, Jervois Mining Limited. EMC maintains that all earn-in conditions outlined under the JV Agreement were met, and has completed all legal pleadings and submissions required for a challenge to this rejection in court in Melbourne, Victoria, Australia, where hearings are scheduled to commence in February, 2013.
For additional information please contact:
EMC Metals Corp.
Investor Relations-Nevada: (775) 355-9500 or firstname.lastname@example.org, or
Sara Boatright Patterson, Windward Global, Charlotte, NC -1-704-588-8600
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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